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2009-10-30 at 16:59

Union talks Monday

By tbnewswatch.com
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The CEP union has scheduled a news conference for Monday regarding Thunder Bay's AbitibiBowater operations.

The news conference is expected to touch on a number of issues, including the potential slashing of local retirement pensions.

Friday in Montreal, the company and its main union announced they are suspending contract talks while they pressure provincial governments for commitments to protect pensions in the company's restructuring. CEP president Dave Coles said the two sides are proposing the establishment of a trust that would allow current pension benefits to continue.

Delegates from 23 local unions at AbitibiBowater pulp and paper mills in Ontario, Quebec and Nova Scotia met with company officials in Montreal this week.

The company is under court protection and has a deficit in its pension plans of $1.3 billion.

The union warns that bankruptcy or a restructuring of the company's debts could result in benefit cuts of up to 27 per cent for 8,300 current and 17,000 retired workers.

Local CEP representative Marvin Pupeza said more information will be revealed on Monday morning. Click here to submit a letter to the editor.

Click here to report a typo or error

Tbnewswatch.com(10)

Comments

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steve says:
If I worked here, I would be falling over myself to offer long-term concessions in labour cost per hour in exchange for pension guarantees.

If not, this company will go belly up, and the workers will have nothing.
10/30/2009 5:17:37 PM
gord says:
Their retirement fund is underfunded by over one billion dollars....sad state of affairs for many of the workers that wont get what they were promised and paid into for years
10/30/2009 7:58:38 PM
elvis2010 says:
So, steve, what you are saying is these workers should just give in and give what ever the company demands while their executives laugh all the way to the bank with their multi million dollar salaries and millions in their pensions, that I can probably safely bet are secured pensions, bet they aren't worrying too much if their pension will be there. B.S.! It is about time these executives are held accountable for STEALING all this money from the employees. What the heck did they do with the $1.3 billion?! Send these bums to jail! Pretty easy to cry poverty now that the economy has tanked but what were they doing with the millions they were making up until the 80's and 90's. Like we have to they should have planned for rainy days instead of lining executives and shareholder pockets with the $1.3 billion of the pensioners money!
10/30/2009 11:15:27 PM
steve says:
I don't disagree that execs are earning too much, but it doesn't change the current situation to gripe about it.

The pension is underfunded, the company has lost money, and the whole thing will go belly up leaving them with nothing unless they come to the table and offer to be part of the solution. I'm not saying the situation is right, but to simply say "this isn't right!" isn't going to put money in their pockets. They need to try and be part of the solution.

Major changes to executive pensions needs to come from government. Pension reform as well.
10/31/2009 9:29:49 AM
darlene says:
I've never understood why pensions aren't protected in this country. I know so many pensioners who worked at the mill from the time it was Great Lakes Forest Products. How can a retirement fund be so in debt? I just don't get how this could have gone one for so many years and no bean counters predicted this?
10/31/2009 12:37:27 PM
Rock49 says:
For those of you who are ignorant on pension issues, concessions are not always the answer. Do you even understand how a pension can be underfunded before you make your arm-chair-quarterback observations? A pension plan must have enough money in it to give a pension to everyone in it. The money in the plan is invested, and based on circumstances such as the stock market, has a total value for the plan. If, for instance, the stock market falls dramatically, the value of the plan is lower, thus underfunded. When underfunded, a company has a length of time to make up the difference. This length of time used to be 10 years, but was recently cut down to 5 years. So with a lower stock market and less people contributing, the company (and/or employees) must make larger contributions to make up this shortfall. Hard to due when times are tough. Did you know that when the stock market was booming, the company didn’t contribute anything to the plan, while the workers still did? The main problem is the government policies which force the companies to make up pension shortfalls in too little time. This is why the company and union are working together to solve this problem. Why not contact your local MP and ask what he is doing to help, instead of blaming the middle income worker trying to raise a family. These workers don’t ask that people such as myself on EI should take concessions on our EI benefits because of the large deficit from people out of work claiming benefits.
10/31/2009 1:06:45 PM
observer says:
Hey Steve, where are your brains? "This will effect the workers who are already retired."

You know what, as the wife of an unemployed Bowater worker of 35years, let the mill go to hell. I guess we will just join the ranks of welfare, and let people like you support me in my old age
10/31/2009 2:32:39 PM
GreatLaker says:
Well said rock 49 you are right about our pension formula. And how it is funded and payed out. And how the market crash screwed things up.
Not long ago our company was allowed pension holidays because the market was performing so well. But all good things come to an end. And now the plan needs time too rebound as the markets come back. Problem being the company does not have that much time. Because of CCAA and we need you to help us lobby the governments of this province and Canada to help these 18,000 retirees before a bad situation becomes worse. Please call you MP'S and MPP'S and erg them to do the wright thing.
10/31/2009 3:37:31 PM
neebing says:
what "wright" (sic) thing would that be, GreatLaker?
11/2/2009 1:35:22 PM
tsb says:
Erg them? Sand sea or unit of energy?
11/2/2009 3:04:07 PM
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